IMF, Pakistan reach staff-level agreement on EFF, RSF reviews

The International Monetary Fund (IMF) and Pakistani authorities have reached a staff-level agreement on the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF). The agreement, finalized in Karachi and Islamabad from September 23 to October 7, 2026, during the 2026 Article IV consultation, will provide Pakistan with approximately $1.0 billion under the EFF and $210 million under the RSF, totaling around $5.7 billion in disbursements.

The IMF team, led by Iva Petrova, reached this agreement while assessing Pakistan's macroeconomic stability and the impact of global events, such as the Middle East conflict. Despite challenges like higher energy prices, volatile global financial conditions, and geopolitical tensions, Pakistan's growth has remained steady, with real GDP growth at 4 percent in the first three quarters of FY26, and an estimated 3.6 percent for the full year.

However, the IMF cautions that risks persist, particularly from geopolitical tensions, energy price volatility, tighter global financial conditions, and trade disruptions. To maintain stability, the Pakistani authorities are committed to sound macroeconomic policies, including maintaining strong fiscal policies, implementing the FY27 budget, and prioritizing targeted cash transfers to support vulnerable households.